Bond Platforms Generate Valuable Data

Terry Flanagan

As fixed income markets become more electronic, so are the modes of delivering market data. Increasingly, data is being delivered directly to the desktop or into trading platforms via real-time data feeds.

Thomson Reuters delivers data for fixed income instruments over its consolidated feed Elektron Real Time and via its flagship desktop Thomson Reuters Eikon. The objective is to provide buy-side fixed income customers with easy access to sources of liquidity and to support workflow.

Given that the market has become more fragmented, insights into liquidity that are generated by trading platforms provide valuable information to traders. “E-trading and data used to be separate but now they are becoming closer,” said Byron Cooper-Fogarty, head of fixed income electronic trading at Thomson Reuters. “Bond pricing is becoming more and more important.”

Thomson Reuters is a majority shareholder of Tradeweb, which plays a big role in the overall Thomson-Reuters fixed income e-trading strategy. Although Tradeweb operates as a separate company, the two have a close relationship.

“Our electronic trading platform generates valuable pricing content for our customers,” said Cooper-Fogarty. “Picking up an indicative quote versus a tradable quote has a big difference in terms of value to clients.

Thomson Reuters Fixed Income Trading, its electronic bond trading platform, provides fixed income liquidity to private bank and wealth management execution desks for a range of instruments from global, regional, and local dealers. It includes over 33,000 debt issues covering government, sovereign, agency, corporate and covered bonds.

“With Thomson Reuters Fixed Income Trading platform, we focus on a niche client, which are the private banks and wealth managers that are looking to automate,” said Cooper-Fogarty. “This automation provides these customers with the ability to locate liquidity and execute quickly.”

MarektAxess’ BondTicker combines Financial Industry Regulatory Authority (Finra) data from the U.S. and European pricing data from Xtrakter with MarketAxess tools to provide actual execution prices, as well as MarketAxess estimated spread-to-Treasuries and asset swap spreads, for trades disseminated by Finra.

BondTicker also includes actual execution prices and depth of market for unique trades executed on the MarketAxess trading system in both TRACE and non-TRACE disseminated bonds which are not available through any other source.

European BondTicker includes end-of-day pricing data covering Euro, Sterling, USD and a range of non-core currency denominated debt, allowing users to source pricing information on a broad universe of bonds, including illiquid instruments.

MarketAxess provides intra-day and end-of-day data for a comprehensive group of fixed income asset classes that can be integrated directly into internal systems or published externally to third-party subscribers. MarketAxess provides users with a turn-key data service that is customized to meet an enterprise’s specific needs.

Photo courtesy of Thomson Reuters

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